👀 Ones to watch: Undervalued stocks to buy before they report Q3 earningsSee Undervalued Stocks

GM, Hyundai Motor to explore joint vehicle development projects

Published 2024-09-12, 06:04 a/m
© Reuters. FILE PHOTO: The new GM logo is seen on the facade of the General Motors headquarters in Detroit, Michigan, U.S., March 16, 2021. Picture taken March 16, 2021.  REUTERS/Rebecca Cook/File Photo
GM
-
F
-
TM
-
TSLA
-
005380
-
7267
-

By David Shepardson

WASHINGTON (Reuters) - General Motors (NYSE:GM) and Hyundai Motor Co said on Thursday they have agreed to explore future collaboration across key strategic areas including potential joint vehicle development, supply chain issues and clean-energy technologies.

The U.S. and Korean automakers said they had signed a non-binding memorandum of understanding to consider ways to "leverage their complementary scale and strengths to reduce costs and bring a wider range of vehicles and technologies to customers faster."

Automakers face tens of billions of dollars in capital costs to build new electric vehicles and batteries, secure supply chains and develop advanced technologies like self-driving vehicles as they face stringent vehicle emissions regulations and heavy competition around the globe.

Potential collaboration projects "center on co-development and production of passenger and commercial vehicles, internal combustion engines and clean-energy, electric and hydrogen technologies," GM and Hyundai said.

Both companies have announced aggressive plans to ramp up electric vehicle production.

The two companies will also review potential combined sourcing in areas like battery raw materials and steel and plan to immediately begin assessing "opportunities and progression towards binding agreements."

The framework agreement was signed by Hyundai Motor Group Executive Chair Euisun Chung and GM Chair and CEO Mary Barra.

"Our goal is to unlock the scale and creativity of both companies to deliver even more competitive vehicles to customers faster and more efficiently," said Barra.

Hyundai Motor includes flagship Hyundai and its affiliate Kia, which together are the world's number three automaker by sales, while GM is the largest U.S. automaker.

The automakers will "evaluate opportunities to enhance competitiveness in key markets and vehicle segments, as well as drive cost efficiencies and provide stronger customer value through our combined expertise and innovative technologies," Chung said.

© Reuters. FILE PHOTO: The new GM logo is seen on the facade of the General Motors headquarters in Detroit, Michigan, U.S., March 16, 2021. Picture taken March 16, 2021.  REUTERS/Rebecca Cook/File Photo

In October 2023, Honda Motor and GM scrapped a plan to jointly develop affordable electric vehicles, just a year after they agreed to work together in a $5 billion effort to try to beat Tesla (NASDAQ:TSLA) in sales.

The two car companies agreed in April 2022 to develop a series of lower-priced EVs based on a new joint platform, producing potentially millions of cars from 2027 onwards.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.